The Netherlands have offered the following relief measures for VAT entrepreneurs who are affected by the consequences of the COVID-19 outbreak:
- VAT entrepreneurs can file a request to postpone payments of VAT (and also wage tax, corporate income tax, personal income tax and several other taxes). The standard payment extension is 3 months. This relief measure will be applicable until June 19th 2020, at least.
- If 3 months payment extension will not be sufficient, VAT entrepreneurs can file a request for a longer payment extension. If the current total tax debts (other taxes included) exceeds a € 20.000 threshold, an expert’s statement must be filed with the Dutch tax authorities evidencing that the payment difficulties are related to the COVID-19 outbreak. Our government has not yet announced the requirements for the contents of such statement. This relief measure will be applicable until June 19th 2020, at least.
Be aware: the deadlines for filing VAT returns are not extended.
- VAT entrepreneurs will not have to pay fines for late payment to the tax authorities.
- The regular collection interest rate (for payments after the payment term has passed) and the tax interest rate have both been decreased temporarily to 0,01%.
- VAT entrepreneurs can file a request to unblock their “G-account”. A “G-account” is a frozen bank account that is only used to make VAT payments (and wage tax payments) to the Dutch tax authorities.
This is the current status of the VAT-related relief measures (April 14th, 2020). Keep in mind that information changes rapidly.
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